Tangredi venture bids to buy SouthEast Waffles
$24.7 million offer is highest of three made so far for assets of bankrupt chain
An entity led by a member of the Tangredi family of
Maria Tangredi, wife of M. Tangredi Restaurants Inc. Predident Michael D. Tangredi and mother of that company's chief financial officer, Michael G. Tangredi, submitted a bid on SouthEast Waffles' assets Friday in U.S. Bankruptcy Court. Under her reorganization plan a proposed company, to be called MNM Waffles LLC, would pay at least $24.7 million for the chain of diners – $3 million at closing and the rest in the next six to 10 years.
Michael D. and Michael G. Tangredi are not named as participants in the new venture. Both are defendants in a civil lawsuit brought by American Express last year that claims they defrauded the credit-card issuer out of more than $1 million. M. Tangredi Restaurants Inc. is in liquidation under Chapter 7 of the Bankruptcy Code, and its three
In an affidavit filed in relation to the seizure by federal authorities of a 2003 Maserati Coupé owned by a Tangredi family member, an agent of the U.S. Secret Service asserted that "probable cause exists to believe that Michael G. Tangredi and Michael D. Tangredi were involved in wire fraud and credit-card fraud." The agent also stated that he had "probable cause to believe that the Maserati was purchased with funds that were fraudulently obtained from American Express."
Michael G. Tangredi is scheduled to go to trial in January on felony charges of forgery and tax evasion brought by the Tennessee Department of Revenue.
The new plan says Maria Tangredi, who has not been sued or prosecuted in those cases, "has been employed in several restaurants owned by members of her family over the course of the past 28 years, including locations in
The MNM Waffles reorganization plan is available at this link, and a disclosure statement accompanying it is available here.
The bid appears to offer creditors more than either of the other reorganization plans submitted last month in the SouthEast Waffles bankruptcy case. MNM anticipates that it will pay back roughly 70 percent of claims from unsecured creditors of SouthEast Waffles.
Waffle House Inc., based in Norcross, Ga., has offered some $21.4 million for the assets of its franchisee over the course of ten years, according to court filings, with unsecured creditors due to get back between 25 and 38 percent of their claims.
SouthEast Waffles itself joined in a competing plan by an affiliate of Gaylord Sports Management, an Arizona firm privately owned by Gaylord Entertainment heir E.K. Gaylord II. Gaylord's team, which includes golfer Phil Mickelson as an investor, offered a minimum of $20.2 million for the waffle seller's assets, with $4.8 million coming up front and the remainder paid out over time. Unsecured creditors would receive between 35 and 45 percent of their claims.
The three bidders, and any others who may join the fray in coming days, are to plead their cases at an August 11 hearing in Bankruptcy Court.
Nashville accountant D. Kent Skinner is listed in the MNM Waffles plan as financial advisor to the venture, while it names local attorney John W. Roberts as counsel to MNM.
Glenn Rose, of Harwell Howard Hyne Gabbert & Manner, representing SouthEast Waffles, gave this response when asked about the new bid:
"I am aware of the many other issues facing the Tangredis in connection with their own restaurant operations, and I question their ability to satisfactorily perform in connection with the SouthEast Waffles stores, given that prior history."
Just to let you know, there is a new article. Apparently Maria Tangredi put electronic signatures for both a financial advisor and an attorney, both of who disavowed giving permission to do so. Seems interesting that a family who seems to give themselves credit for knowing the legal system so well would make such a crucial mistake. To the Tangredi's, this is neither false, nor malicious. This is simply statements of fact and opinion. Neither of which are entitled to relief. Just to save you the time and effort if you were considering another lawsuit.
ReplyDeleteIt would seem that everything on this particular blog is either fact or opinion. I will reiterate....actions that do not entitle one to relief. A lawsuit for something such as this would be a gross misuse of the Tennessee courts.